Disappointing U.S. Gross Domestic Product (GDP) Pushes Stocks Downward

by Colonel on January 30, 2013

“After a month of impressive gains that brought the Dow within 200 points of a record, the markets have paused this week. Stocks started the day lower Wednesday after a report showed that the U.S. economy unexpectedly contracted in the fourth quarter. That decline extended after the Federal Reserve said that it would continue to try to boost growth through a bond-buying program designed to keep borrowing costs down.

The Dow Jones industrial average fell 44 points, or 0.3 percent, to close at 13,910.42, logging only its second decline in nine days. The Standard & Poor’s 500 fell 6 points, or 0.4 percent, to 1,501.96, its biggest decline since Dec. 28. The Nasdaq composite fell 11 points. …

The U.S. economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

” — Steve Rothwell, Copyright 2013 The Associated Press

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